Common use of Right of City to Clause in Contracts

Right of City to. claim on Guarantee‌ (a) The Developer agrees that the City may make an appropriation from the Guarantee in such amount as the City, acting reasonably, thinks appropriate if: (i) The Developer fails to comply with clause 2 of Schedule 3 (payment of Monetary Contribution); (ii) the City allows the Developer not to complete the Public Benefits, or any part of it, in accordance with clause 6.4(a)(ii); (iii) an Insolvency Event occurs in respect of the Developer; (iv) the Developer fails to deliver the Public Benefits in accordance with clause 6.4(b); (v) the Developer fails to rectify a Defect in accordance with clause 8.2 of this document; (vi) the detailed designs for the Developer’s Works/ and or the Public Art are not finalised between the parties within 12 months of the date of issue of a Construction Certificate that approves the construction of any structures above the ground floor of the Development; (vii) the Developer’s Works and/or the Public Art does not reach Completion within 36 months of the date of issue of the first Construction Certificate in respect of the Development (or such later time as agreed by the City in writing); or (viii) the City incurs any other expense or liability in exercising its rights and powers under this document. (b) Any amount of the Guarantee appropriated by the City in accordance with clause 10.2 must be applied only towards: (i) the costs and expenses incurred by the City rectifying any default by the Developer under this document; and (ii) carrying out any works required to achieve the Public Benefits; or (iii) in relation to the Public Art component of the Public Benefits, procuring and installing public art in another location in the City that achieves the primary purpose of public art as a public benefit.